JA HS0021-18-C-0003 Redacted.pdf

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

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JUSTIFICATION AND APPROVAL

FOR

OTHER THAN FULL AND OPEN COMPETITION

Vetting Risk Operations Center (VROC)

Continuous Evaluation (CE) Services

HS0021-18-C-0003 P00015

Control Number: 20-93PR

REFERENCES: In accordance with the Federal Acquisition Regulation (FAR) 6.303, for acquisitions exceeding the simplified acquisition threshold (SAT), the contracting agency is required to prepare a sole source justification using the format at FAR 6.303-2 as provided below.

DOCUMENTATION:

(1) Identification of the agency and the contracting activity.

Requiring Activity:

Defense Counterintelligence and Security Agency (DCSA) Vetting Risk Operation Center (VROC) 27130 Telegraph Road Quantico, VA 22134

Contracting Activity:

DCSA

Acquisition and Contracting (AQ) 27130 Telegraph Road Quantico, VA 22134

(2) Nature and/or description of the action being approved.

DCSA at Fort Meade, MD plans to issue a modification to contract number HS0021-18-C-0003, with Celerity Government Solutions, LLC., (Celerity) to extend the period of performance by nine months by adding three, three-month, option periods. The extension is required in order to continue providing critical Continuous Evaluation (CE) support services to the Vetting Risk Operations Center (VROC). This action is being accomplished as a result of continual protests against a new consolidation effort which includes the requirements of contract number HS0021-18-C-0003. The total value of contract number HS0021-18- C-0003 is This action will raise that value by increasing the acquisition value of contract number HS0021-18-C-0003 from Fiscal year 2020 Operation and Maintenance (O&M) funding will be used to fund option period 24. If exercised, the remaining option periods will be funded by fiscal year 2021 O&M funding. A breakout of the option periods can be found in the chart below. Option period 24 will be exercised immediately in concurrence with this action. The additional options will only be exercised if a consolidated action is not in place.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated

Option Period CLINs Period of Performance 24 2701, 2702, 2703 05 July 2020 to 04 October 2020 25 2801, 2802, 2803 05 October 2020 to 04 January 2021 26 2901, 2902, 2903 05 January 2021 to 04 April 2021

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value).

The objective of this effort is to maintain the essential knowledge-based analytic support capabilities to validate alerts generated by the Department of Defense (“DoD” or “Department”) Continuous Evaluation (CE) Program. The CE program uses supporting systems to receive and determine that the CE results meet established reporting criteria before forwarding adjudicative-relevant and actionable information to the DoD Consolidated Adjudication Facility (DoD CAF) and DoD Component security officials, as appropriate. This program is necessary to ensure adequate protection of National Security information. These analytic support services from the contractor will enable VROC to achieve its vital mission as defined by Office of the Under Secretary of Defense for Intelligence (OUSD (I)) CE Mission memo dated December 19, 2016 and Executive Order 13467 signed in June 2008. The Executive Order formally established CE as a means of reviewing the background of individuals who have been determined to be eligible to access classified information at any time during the period of eligibility.

Background reviews of individuals are required to determine whether individuals continue to meet the requirements for eligibility to access classified information.

The VROC’s Continuous Evaluation mission implements the Department’s investigative program to continuously vet all cleared DoD personnel as directed by the Secretary of Defense’s February 21, 2014 memorandum and in accordance with the Office of Management and Budget “Report to the President, Suitability and Security Processes Review.” The contractor shall provide critical analytic support services, to include relevant subject matter expertise to enable the VROC to achieve its Continuous Evaluation mission.

(4) An identification of the statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1- “Only One Responsible Source Will Satisfy Agency Requirement”.

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

This extension is required in order to continue providing critical CE support services to the VROC. This extension is required as a result of continual protests against a new consolidation effort which includes the requirements of contract number HS0021-18-C-0003. A summary of the continual protests against the consolidation effort is as follows:

On November 6, 2018, solicitation number HS0021-19-R-0003 was posted to the Federal Business Opportunities (FBO) website. Solicitation number HS0021-19-R-0003 is the initial consolidation effort which includes the requirements of HS0021-18-C-0003. On 10 January 2019, DCSA notified unsuccessful offerors which submitted proposals in response to solicitation HS0021-19-R-0003, that was being considered for award under the solicitation. On 17 January 2019, a timely small business size protest was received and forwarded to the Small Business Administration (SBA). On 28 February 2019, the SBA resolved the protest in the governments’ favor, determining that the potential awardee, was a small business concern for the applicable size standard of million.

On 12 March 2019, the Contracting Officer awarded contract number HS0021-19-C-0001 (resulting from solicitation number HS0021-19-R-0003), to On 15 March 2019 the Contracting Officer for HS0021-19-C-0001 received notice that appealed SBA’s decision to the SBA Office of Hearings and Appeals (OHA). In addition, on 22 March 2019, protested the award of contract number HS0021-19-C-0001 to the Government Accountability Office (GAO.) On 03 June

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2019, the SBA OHA denied appeal and reaffirmed the size determination previously made by the SBA area office.

On 18 June 2019, the GAO dismissed the protest based on the corrective action plan submitted by DCSA. On 15 September 2019, DCSA completed the required corrective action in response to the GAO protest and re-confirmed award to On 26 September 2019, filed a second protest with GAO contesting the award again. On 28 October 2019, DCSA filed an Agency Report, in response to the second GAO protest. On 30 December 2019, GAO sustained the second protest in part and denied the protest in part. On January 24, 2020, contract number HS0021-19-C-0001 was terminated for Government Convenience. DCSA developed a new acquisition strategy to directly award the consolidation effort to an 8(a) American Native Corporation (ANC); however, on 17 March 2020, filed another protest, this time in the Court of Federal Claims (COFC) protesting the 8(a) ANC effort. DCSA is currently in the process of resolving that protest.

As detailed above in section 3, the VROC has a critical need to maintain the CE analytic support services to process alerts containing derogatory information on the DoD cleared population. This includes alerts which may contain insider threat information representing an imminent threat to national security as the alerts contain derogatory information concerning cleared subjects with access to classified information.

The data agreements in place for automated records checks of the cleared subjects are a combination of time-based and event-driven checks. The event-driven checks will continue to occur and trip alerts of potentially derogatory information upon the cleared population causing the number of alerts to increase without analytic support services to perform triage and administrative actions. Delays in this mission area will create a grave risk to national security and impact the DoD readiness posture. The DoD provides security oversight for 32 other federal agencies under the National Industrial Security Program (NISP), which includes the CE requirement.

As permitted by FAR 6.302-1(a)(2)(iii)(B) a sole source award will be made to Celerity Government Solutions, LLC on the basis that only one responsible source and no other services will satisfy the agency’s requirements. The award will be made via contract modification which will extend the contract period of performance by nine months by adding three, three-month option periods to the contract.

While other entities may have the ability to perform the critical services obtained under this contract, the time period needed to competitively solicit, evaluate, and award a new action would cause unacceptable delays in fulfilling agency requirements. DCSA is attempting to resolve the current COFC protest, and if successful, will be able to put a contract in place. The current contractor is performing acceptably under the terms and conditions of the contract and has the necessary people and skills to continue performing the requirement without interruption.

At this time, Celerity Government Solutions, LLC is the only source which possesses the unique skills, technical capabilities, and personnel which are currently positioned to immediately perform the services required. It is highly unlikely that another contractor could step in for this short period of time, just one three-month option period – nine (potential) total months to accomplish the required tasks. It is not realistic to expect another contractor to perform the required services for such a short period of time at the same level of quality and at reasonable price. A new contractor would have to transition into performing the services provided onto this contract while overcoming the learning curve which comes with a new contractor performing a new effort. These barriers would cause a new contractor to incur additional costs, which would be cost prohibitive to the Government and significantly increase the risk of unsuccessful performance on this contract. It is important to remember that once the protest on the consolidation effort is resolved, no additional option periods will be exercised on this contract as the requirements of this contract are incorporated into the consolidated effort. Any attempts to secure another source at this time would result in unacceptable delays which would create a break in service thus, creating a high risks of CE failure. The extension of this sole-source contract to Celerity ensures

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continuity of the CE mission and minimizes risk to national security. Additionally, the incumbent’s continued support will negate any learning curve costs as no learning curve will exist. Failure to bridge this current contract will result in an unacceptable interruption of critical services.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

In accordance with Federal Acquisition Regulation (FAR) 5.201(b)(1), a synopsis was posted to the Beta.SAM website on May 28, 2020. The synopsis closed on June 12, 2020. No responses were received to the synopsis posting. In accordance with FAR 6.305, this Justification and Approval for other than full and open competition will be posted to Beta.SAM within 14 days after modification award.

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Contract pricing contained in the original contract was determined to be fair and reasonable at the time of initial contract award. A price analysis has been conducted and is attached to the J&A. As a result of extending the existing contract, contract pricing on a monthly basis should change very little, if any.

The estimated increase in contract cost should only come from the extension of the contract, and will be minimal, likely as a result of inflation. Any inflation cost increases to the contract will be reviewed against the Bureau of Labor Statistics Employment Cost Index. No additional services are being added to the contract. Nonetheless, the Contracting Officer will make a fair and reasonable cost or price determination by utilizing one or more of the procedures found in FAR 15.404-1.

(8) A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted for the first consolidation effort which resulted in the award and termination of contract number HS0021-19-C-0001. Competition was received for the first consolidation effort. Market research was also conducted for the second consolidation effort which attempted an 8(a) ANC action. Market research for the second consolidation effort also found additional sources which could provide these services. It is known that there are additional sources which could provide these services if there is an adequate solicitation, evaluation and transition time allotted which would allow the continuation of CE services without a break in service.

Additional market research would only confirm the Government’s previous findings and not provide any benefit to the Government’s current situation. Any further market research would be duplicative and likely only add duplicative costs to the Government effort. The Government has been and will continue to actively work to put a consolidation effort in place which will allow for an adequate transition time as stated above. In the meantime, the Government will extend contract number HS0021- 18-C-0003 as permitted by FAR 6.302-1(a)(2)(iii)(B), as CE services are highly specialized and it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

(9) Any other facts supporting the use of other than full and open competition, such as:

Awarding a new contract for the period of performance which is encompassed within this action would require an extension beyond the time it will take to finalize the current protest and to complete the procurement process. At this time, Celerity Government Solutions, LLC, the incumbent vendor, is the only source to possess the unique skills, the technical capabilities and the personnel which are currently

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positioned to immediately perform the services required. Any attempts to secure another source would result in unacceptable delays which would create a break in service thus, creating a high risks of CE failure. DoD possesses CE reports containing potential derogatory information on the cleared population, the people entrusted with classified information and access to persons and property. Without CE analytic support services, DoD will be unable to mitigate the risks associated with the potential derogatory information.

This represents a grave risk to the Government. This is an unclassified requirement; however, the work being conducted is at the Top Secret classification level. All work will be conducted by the incumbent and the proposed subcontractors, all of whom currently hold the necessary facility clearances and the capability to provide cleared personnel. All personnel must possess a Secret clearance at a minimum, but certain labor categories may require a Top Secret clearance.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

A synopsis of the requirement was posted at Beta. Sam on May 28, 2020 IAW FAR 5.201 (b)(ii). To date, no responses have been received. This Justification and Approval document will be posted IAW FAR 6.305(a).

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

The requirement has been completed and subsequent award of the new contract (HS0021-19-C-0001) will be made to the competitive awardee upon conclusion of the current protest action.

CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Requiring Activity/Program Management Office Printed Name:

Title: Chief Program Management Office, Vetting Risk Operation Center, Organization Code: DCSA-DVD-VROC

Signature

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CONTRACTING OFFICER CERTIFICATION

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Printed Name:

Title: Contracting Officer, Branch Chief Vetting Contracts B Organization Code: DCSA AQ

Signature:

ACTIVITY COMPETITION ADVOCATE

Based on the foregoing justification, I hereby approve the procurement of CE Analyst Support, for an estimated value of and for the period of performance of 5 July 2020 through 4 April 2021, on an other than full and open competition basis pursuant to the authority of 10 U. S. C. 2304(c)(1), subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Printed Name:

Title: Competition Advocate Organization Code: DCSA AQ

Signature:

Attachment 01: Price Analysis